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401 Kaye: Create Your Own Inheritance

Howard Kaye 401K

A 401 Kaye plan is different than your standard 401K plan. It's also known as the Create Your Own Inheritance Plan. Here is an example of what we're talking about:

A young couple is currently contributing $20,000 to their retirement plan each year and plans to retire in 25 years. If you asked them how much they want that amount of money to grow each year though, they don't have an answer. Let's assume that out of that $20,000 a year, you take half and put it into different funds like always - you just keep doing what you're already doing with $10,000 of that $20,000. With the other $10,000 you could, at some point during your retirement, have $700,000 or more, after tax, to utilize during that time.

How can you be sure? Here's how it works. Say, your parents are 69 years old and in good health. You can buy a $700,000 life insurance policy on them at $10,000 a year. If in 25 years, in their 90's, they are still alive, the fortune you made with your $10,000 a year can be utilized. If they pass away before that, the $700,000 will come in completely tax free for helping you to enjoy your retirement.

Not a bad idea.

The Howard Kaye Insurance Agency deals with financial matters like estate planning, asset protection, 401K and IRA solutions to help you create and preserve your wealth. For more information, please visit or call 1-800-DIE-RICH (343-7424).

These informational materials are not intended, and should not be taken as medical advice on any particular set of facts or circumstances. You should contact a physician for advice on specific health problems. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the television station.

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